Correlation Between DAX Index and Avanos Medical
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By analyzing existing cross correlation between DAX Index and Avanos Medical, you can compare the effects of market volatilities on DAX Index and Avanos Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DAX Index with a short position of Avanos Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Avanos Medical.
Diversification Opportunities for DAX Index and Avanos Medical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Avanos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Avanos Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanos Medical and DAX Index is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DAX Index are associated (or correlated) with Avanos Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanos Medical has no effect on the direction of DAX Index i.e., DAX Index and Avanos Medical go up and down completely randomly.
Pair Corralation between DAX Index and Avanos Medical
Assuming the 90 days trading horizon DAX Index is expected to generate 0.3 times more return on investment than Avanos Medical. However, DAX Index is 3.34 times less risky than Avanos Medical. It trades about 0.11 of its potential returns per unit of risk. Avanos Medical is currently generating about 0.0 per unit of risk. If you would invest 1,665,055 in DAX Index on September 12, 2024 and sell it today you would earn a total of 374,861 from holding DAX Index or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Avanos Medical
Performance |
| Timeline |
DAX Index and Avanos Medical Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Avanos Medical
Pair trading matchups for Avanos Medical
Pair Trading with DAX Index and Avanos Medical
The main advantage of trading using opposite DAX Index and Avanos Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Avanos Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Avanos Medical will offset losses from the drop in Avanos Medical's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Avanos Medical vs. Major Drilling Group | Avanos Medical vs. Kaiser Aluminum | Avanos Medical vs. LION ONE METALS | Avanos Medical vs. SWISS WATER DECAFFCOFFEE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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